This error means there is a problem with the connection between your computer and the MSN server. Try uninstalling MSN Messenger, rebooting, downloading a fresh copy from
http://messenger.msn.com and installing this. Make sure you don't have any patches, add-ons or somethings else for MSN Messenger installed or running.
You can also check this if it doesn't seem to work:
http://shoutbox.menthix.net/showthread.php?tid=20295